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High Net Worth Investors Are Buying Gold

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Elanora Brown
High Net Worth Investors Are Buying Gold

After a decline in prices following its peak in 2011, people are talking about gold again, and this time, it’s attracting the attention of both institutional and high net worth investors. Central banks across the globe are increasing their gold stocks, while private, high net worth investors expand their portfolios to include gold bullion. No strangers to paper gold, the big shift is now the appeal they see in physical gold bullion. If you’re thinking about buying gold, it pays to know a bit about buying gold as a high net worth investor.

 

High net worth investors who use gold dealers like Silver Gold Bull can work with an assigned business executive who help you achieve the financial goals that have brought you into the gold market. Think of it the way you think of stocks – you wouldn’t invest a large sum of capital in a company you knew nothing about, you invest in what you know. Rather than limit your investment options, this adage is an imperative to learn about promising investment options before you dive in. The better you understand the market you’re working with, the better you can achieve your financial goals, whether that’s mitigating risk, maintaining value over time, setting up an inheritance, or any objective. High net worth investors find out about where to start on this great blog about gold investing as well as market insights, storage tips, and rare products.

 

Many high net worth investor’s trade in a combination of paper gold and increasingly physical gold, though if you’re new to precious metals, you may be wondering what paper gold is. Paper gold is like an “IOU” – if you hold a certificate for gold, you’re the creditor to the company that produces or sells the gold, much like keeping a bank account, where the money isn’t physically stored in a vault, but lent out at interest. Physical gold is leased out on paper at a ratio of about 1:100, which means that if enough people wanted to claim the physical gold at once, there wouldn’t be enough to satisfy those demands.

 

When physical gold is taken out of a position where it can be leased, such as when Germany repatriated some of the gold bullion stores it kept in Paris and New York on August 2017, the move can prompt a rise in the price of gold. Due to German regulations, when that gold moved to Frankfurt, it came off the leasing market, causing a ripple effect, as there is now less physical gold bullion in the world to back up the paper.

 

There’s a reason that high net worth investors are turning to gold bullion, especially physical gold. Find out what it can do for your portfolio with a gold dealer that provides its high net worth investors market insights and preferential access to investment opportunities like Silver Gold Bull. Gold is more than just a safe investment – with the right insights and market knowledge, it can also be a high yield commodity investment. Don’t miss out on the opportunities gold bullion can offer your investment strategy.

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Elanora Brown
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